Sam Bankman-Fried, the former CEO of Alameda Research, has reportedly received a payment of $2.2 billion, largely from Alameda Research. In contrast, former CEO Caroline Ellison only received $6 million. This discrepancy in payment highlights the dominance of Bankman-Fried in the world of crypto trading and investment, as well as the potential gender pay gap in the industry.
FTX, the Bahamas-based digital asset exchange, made headlines recently after its sudden bankruptcy announcement. According to newly appointed CEO John J Ray III, the exchange’s collapse was caused by “a very small group of grossly inexperienced and unsophisticated individuals.” The drama surrounding FTX involves a $3.2 billion payout to ex-staff, with most of it coming from Alameda Research, the quantitative trading firm and sister trading firm of FTX.
Sam Bankman-Fried, also known as SBF, received the bulk of these payments and loans, which amounts to $2.2 billion. This figure is even more striking when compared to the payouts received by other executives, such as former Alameda CEO Caroline Ellison, who only received $6 million. The former director of engineering, Nishad Singh, received $587 million, while co-founder Gary Wang received $246 million.
Former FTX Digital Markets co-CEO, Ryan Salame, was handed $87 million, while the former co-head of Alameda Research, Sam Trabucco, got $25 million. Interestingly, Trabucco resigned from his post as CEO of Alameda in August and hasn’t been heard from publicly since.
Authorities have yet to announce charges against Trabucco, unlike the rest of Bankman-Fried’s inner circle. SBF is facing 12 criminal charges in the United States, with some of those charges handed down in a superseding indictment last month. SBF pleaded not guilty to the original charges and now awaits a trial scheduled for October.
Ellison, Wang, and Singh have admitted to fraud and are cooperating with investigators. Ellison, who had an on-off romantic relationship with Bankman-Fried, was appointed co-CEO of Alameda along with Trabucco in October 2021. She assumed the role of sole CEO after Trabucco resigned.
The collapse of FTX also involved a significant amount of missing client cash, with a large amount presumed stolen. As the saga continues, it remains to be seen what other developments will emerge. Nonetheless, with all the drama surrounding FTX, it serves as a reminder that transparency and accountability remain critical in the crypto industry.